The deal, which is expected to be announced this week, would mark the second major contract handed out to a free agent pitcher by the Twins this offseason. RHP Ricky Nolasco and Minnesota agreed to terms on a four-year, $49 million deal Wednesday.

The Nolasco contract is the biggest deal ever given by the Twins to an outside free agent, and the Hughes deal would be the second biggest, the Star Tribune reports. It doesn't come without risk.

Hughes, 27, has spent his entire seven-year career with the New York Yankees. He struggled badly in 2013, going 4-14 with a 5.19 ERA and 1.455 WHIP. Much of the damage was done at Yankee Stadium, where he allowed 17 home runs and had a 6.32 ERA, so the Twins are betting a change of scenery to pitcher-friendly Target Field will help his effectiveness.

Hughes was an All-Star in 2010 when he went 18-8 with a 4.19 ERA and was shaping up as a building block for the Yankees' rotation. He was a former first-round draft pick and a once coveted young pitcher by many teams. Among them was the Twins, who had discussions with the Yankees about Hughes headlining a package for ace Johan Santana after the 2007 season.

The Yankees eventually pulled out of the talks, in part because of how highly they thought of Hughes, and the Twins sent Santana to the Mets.

But Hughes developed shoulder problems in 2011 that limited him to 17 starts and has been underwhelming the past two seasons while also dealing with back problems.

Overall, Hughes is 56-50 with a 4.54 ERA and a 1.322 WHIP.

According to the newspaper, the Twin also might re-sign RHP Mike Pelfrey, who went 5-13 with a 5.19 ERA in his first season back from Tommy John surgery.